Kombea Corp. v. Noguar L.C.

73 F. Supp. 3d 1348, 2014 U.S. Dist. LEXIS 177186, 2014 WL 7359049
CourtDistrict Court, D. Utah
DecidedDecember 23, 2014
DocketCase No. 2:13-CV-957 TS
StatusPublished
Cited by3 cases

This text of 73 F. Supp. 3d 1348 (Kombea Corp. v. Noguar L.C.) is published on Counsel Stack Legal Research, covering District Court, D. Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kombea Corp. v. Noguar L.C., 73 F. Supp. 3d 1348, 2014 U.S. Dist. LEXIS 177186, 2014 WL 7359049 (D. Utah 2014).

Opinion

MEMORANDUM DECISION AND ORDER GRANTING PLAINTIFF’S MOTION FOR PARTIAL SUMMARY JUDGMENT

TED STEWART, District Judge.

This matter is before the Court on Plaintiff KomBea Corporation’s Motion for Partial Summary Judgment declaring the invalidity of United States Patents Nos. 8,503,619; 7,933,387; 8,438,494; and 7,640,510 under 35 U.S.C. § 101. The Court heard oral argument on Plaintiffs Motion on December 9, 2014. For the reasons discussed more fully below, the Court will grant Plaintiffs Motion.

I. BACKGROUND

Defendant Noguar L.C. (“Noguar”) holds United States Patents Nos. 8,503,619 (the “'619 patent”); 7,933,387 (the “'387 patent”); 8,438,494 (the “'494 patent”); and 7,640,510 (the “'510 patent”) (collectively the “patents-in-suit”). The patents-in-suit generally pertain to a telemarketing system that allows an agent to use prerecorded scripts, live voice, and interjections during a telemarketing call to tailor the call to potential customers while giving the impression that the conversation is person-to-person. The '619 patent relates to a [1350]*1350system that allows a telemarketing agent to manage the interaction between the agent and potential customer using a computer. The '387 patent relates to a system that allows a telemarketing agent to selectively respond to a potential customer with either a live-voice or prerecorded script. The '494 patent relates to a method of creating an agent-controlled computerized telemarketing sales presentation comprised of prerecorded audio files and the agent’s live interjections. The '510 patent relates to a method of using personal information gathered in the call to select scripts that relate to the potential customer. Collectively, the patentsfin-suit relate to a broader system of automating telemarketing calls while allowing a telemarketing agent to personalize the calls to fit the needs of the potential customer and give the impression that the- potential customer is speaking to a real salesperson, as opposed to listening to a recorded sales presentation.

II. SUMMARY JUDGMENT STANDARD

Summary judgment is appropriate “if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.”1 The “party seeking summary judgment always bears the initial responsibility of informing the district court of the basis for its motion, and identifying those portions of the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, which it believes demonstrate the absence of a genuine issue of material fact.”2 “Once the movant has made this showing, the burden shifts to the nonmovant to designate specific facts showing that there is a genuine issue for trial.”3

A patent is presumed valid, and each claim of a patent is presumed valid independently of the validity of other claims.4 “The burden of establishing invalidity of a patent or any claim thereof shall rest on the party asserting such invalidity.” 5 Plaintiff, as the party asserting invalidity, must overcome the presumption of validity by clear and convincing evidence.6 This burden applies to a motion for summary judgment seeking invalidity.7

III. DISCUSSION

Section 101 of the Patent Act defines patent eligible subject matter. It provides, “Whoever invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof, may obtain a patent therefor, subject to the conditions and requirements of this title.” 8 The Supreme Court has “long held that [§ 101] contains an important implicit exception: Laws of nature, natural phenomena, and abstract ideas are not patentable.” 9 However, the Court “tread[s] carefully in construing this exclusionary principle lest it swallow all of patent law. At some level, all inventions ... embody, [1351]*1351use, reflect, rest upon, or apply laws of nature, natural phenomena, or abstract ideas.” 10 “[A]n invention is not rendered ineligible for patent simply because it involves an abstract concept. Applications of such concepts to a new and useful end ... remain eligible for patent protection.” 11 Therefore, the Court distinguishes between “patents that claim the building blocks of human ingenuity and those that integrate the building blocks into something more.”12

To make the distinction between those patents that claim the building blocks of human ingenuity and those that claim something more, the Court uses the two-step analysis found in Mayo Collaborative Services v. Prometheus Laboratories, Inc. “First, we determine whether the claims at issue are directed to one of those patent-ineligible concepts. If so, we then ask, ‘what else is there in the claims before us?’ ”13 In the second step of the Mayo analysis, the Court considers the elements of the patent’s claims, both individually and in their entirety, to “determine whether the additional elements transform the nature of the claim into a patent-eligible application.”14

Plaintiff ai'gues that Defendant’s “claimed invention is nothing more than an abstract idea applied through a generic computer” and is not patentable subject matter.15 Defendant argues that “the genius of the method ... is us[ing] a computer to dramatically increase the efficiency of the telemarketing process — enabling a low-skilled operator to conduct a real-time conversation with a contact in such a way that the contact perceives they are actually talking to a live agent.”16 Additionally, at the hearing, Defendant argued that Plaintiffs patents are unique solutions to unique problems and therefore patent-eligible subject matter.

The Court will apply the two-step Mayo analysis set forth above to determine the patent eligibility of the patents-in-suit. Doing so, the Court finds that the patents-in-suit are similar to those discussed in Bilski v. Kappos17 and Alice Corp. Pty. Ltd. v. CLS Bank International and that they are directed toward abstract ideas. The Court finds support for its analysis in recent applications of the concepts discussed in Bilski and Alice by several district courts. Second, considering each patent’s claims, both collectively and individually, the Court finds that each of the patents-in-suit falls short of transforming the patents to patent-eligible subject matter.

In Bilski, the Supreme Court considered whether patents that related to hedging risk in a trading market were directed to patent-ineligible concepts.18 The Court found that “[hjedging is a fundamental economic practice long prevalent in our system of commerce” and that “[tjhe concept of hedging is an abstract idea.”19 In [1352]*1352Alice, the Court considered whether patent claims related to mitigating settlement risk were directed toward patent-ineligible concepts.20

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Bluebook (online)
73 F. Supp. 3d 1348, 2014 U.S. Dist. LEXIS 177186, 2014 WL 7359049, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kombea-corp-v-noguar-lc-utd-2014.